Sen. John Kennedy (R-LA) has crafted a bill designed to enhance retirement savings plan options while simplifying the process.
Kennedy said the measure would make it easier and less expensive for small businesses to offer retirement plans, like 401(k)s, by encouraging small businesses to band together through organized business associations, like chambers of commerce, to sponsor affordable retirement plans for all of the associations’ members.
“Millions of Americans work for small businesses that don’t have the resources to offer their employees retirement plans, which can make saving for retirement challenging and complicated,” Kennedy said. “This bill will make retirement plans more simple and available to people who own or work for small businesses. Americans know the value of hard work, and we work like dogs hoping that one day, we’ll be able to kick back and retire. This legislation will help make those retirement dreams more accessible to many hard-working Americans.”
Bureau of Labor Statistics maintains one-third of private sector employees did not have access to employer-sponsored retirement plans three years ago, and only 47 percent of employees of small businesses with fewer than 50 employees have access to defined retirement contribution plans, such as 401(k)-style plans.